New Delhi: Over 50 lakh Central Government employees and 30 lakh pensioners could get a huge relief on Tuesday as the Union Cabinet is likely to approve a proposal to increase dearness allowance (DA) to 80 per cent from the existing 72 per cent. The increased dearness allowance could be applicable from January 1, 2013 and the employees and pensioners would be entitled for arrears, a source said.
The government had hiked DA to 72 per cent in September 2012, which had come into effect from July 1, 2012.
"It is good that they are increasing DA. We demand that they should merge up to 50 per cent DA with the basic pay as per the practice and set up the seventh pay commission at the earliest", Secretary of Confederation of Central Government Employees, KKN Kutty said.
As per the practice, the DA is merged with basic pay when it breaches the 50 per cent cap. This helps employees get higher allowances as those are paid as proportion of the basic pay.
(With additional information from PTI)
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